Annual inflation rose by 1.5 percent in June, up from preliminary data released at the start of the month, which showed a 1.3 percent increase. Meanwhile, the European Commission lowered its growth and inflation estimates on Wednesday, claiming US trade policy posed a huge risk to the bloc.The EC stated that it predicted growth in the bloc would slow to 1.2 percent from 1.9 percent growth in 2018. Further dampening sentiment in the euro was the fact that 2020 growth forecasts were downwardly revised to 1.4 percent from 1.5 percent.

t was also confirmed that the slowdown in the Eurozone was largely caused by weaker growth in both Germany and Italy, the first and third largest economies in the bloc.

Meanwhile, on Wednesday data from the Office for National Statistics (ONS) showed that the UK economy expanded by 0.3 percent in May.

This came after a slump of -0.4 percent in April and the modest rebound lent the Pound some support.

Commenting on the data, Head of Economics at the British Chambers of Commerce, Suren Thiru said: “Although there was a modest rally in GDP growth between April and May, the continued slowdown on the underlying three-month measure is further evidence that the UK economy is faltering under the weight of relentless Brexit uncertainty and tougher global economic conditions.”

Looking ahead to Friday it is likely the pound may struggle following a speech from the Bank of England’s Gertjan Vlieghe.

If Dr Vlieghe mentions monetary policy and his tone is overly dovish it could dampen sentiment in Sterling.

Meanwhile, the euro could rise following the release of the Eurozone’s industrial production data.